Crude Oil crashes on the close

[southsider2k5]

It closed below $50 for the first time in a while, selling off hard during the last half hour of trading. It is a real good technical sign as it broke a key support level at $50 and closed on its lows. The next support levels look like about $45, but that could be pessimistic. There has been a lot of talk of over supplies from the OPEC countries, so if this is true, the price of crude could potentially crash.

[mreye]

[Soxy]

Whew, that's good news. I was expecting to read about some poor oil covered animal somewhere....

[NUKE_CLEVELAND]

It closed below $50 for the first time in a while, selling off hard during the last half hour of trading.  It is a real good technical sign as it broke a key support level at $50 and closed on its lows.  The next support levels look like about $45, but that could be pessimistic.  There has been a lot of talk of over supplies from the OPEC countries, so if this is true, the price of crude could potentially crash.

 

 

That'd be fine by me. Energy prices are a major factor holding the economy back right now.

[KipWellsFan]

Damnit, we export more than import, so not good news for our economy, but good for drivers.

[YASNY]

I hope the oil prices keep dropping, but I have my doubts.

[Be Good]

Finally, the average for Reg in Long Island, NY is: 2.45 give or take

[DBAHO]

Hopefully this means Petrol Prices back under a dollar a litre down here.

[CubKilla]

Maybe the crash is due to the US finally being ready to pump, refine, and sell all that oil the US got when the "Bushies" invaded Iraq

 

[southsider2k5]

Finally, the average for Reg in Long Island, NY is: 2.45 give or take

 

We are at about $2.15 for no lead.

[NUKE_CLEVELAND]

Maybe the crash is due to the US finally being ready to pump, refine, and sell all that oil the US got when the "Bushies" invaded Iraq

 

 

 

That's what I never understood about the whole "war for oil" argument. Iraq produces, on its best day, about 2 million barrels of oil. That's peanuts compared to nations like Kuwait, Saudi Arabia and even Iran. If you really wanted to talk about a war for oil the correct place to look was the first Gulf War and that's because Saddam Hussein was poised to sieze most of it in the gulf region.

[LowerCaseRepublican]

That's what I never understood about the whole "war for oil" argument.  Iraq produces, on its best day, about 2 million barrels of oil.  That's peanuts compared to nations like Kuwait, Saudi Arabia and even Iran.  If you really wanted to talk about a war for oil the correct place to look was the first Gulf War and that's because Saddam Hussein was poised to sieze most of it in the gulf region.

 

The amount of oil in the region, Nuke. The amount that could be harnessed in production. As Laurent Murawiec, the ex-LaRouche cultist who famously briefed the Pentagon Policy Board at Richard Perle's invitation, put it:

 

"Iraq is the tactical pivot,

 

Saudi Arabia the strategic pivot,

 

Egypt the prize."

[NUKE_CLEVELAND]

The amount of oil in the region, Nuke.  The amount that could be harnessed in production.  As Laurent Murawiec, the ex-LaRouche cultist who famously briefed the Pentagon Policy Board at Richard Perle's invitation, put it:

 

"Iraq is the tactical pivot,

 

Saudi Arabia the strategic pivot,

 

Egypt the prize."

 

 

Saddam Hussein knew that. Good thing we stopped him.

[Punch and Judy Garland]

Oil fell a couple of weeks ago and then the price rebounded to the upper 50's so I'm cautiously optimistic at best here

[NUKE_CLEVELAND]

Oil fell a couple of weeks ago and then the price rebounded to the upper 50's so I'm cautiously optimistic at best here

 

 

Right now the deck is stacked against oil moving back to the highs. Oil inventories are rising faster than analysts are expecting, the world situation is relatively quiet, and high prices are starting to crimp demand. All of this could change in the blink of an eye but for now the situation seems to favor prices heading lower.

[southsider2k5]

Oil fell a couple of weeks ago and then the price rebounded to the upper 50's so I'm cautiously optimistic at best here

 

Charts are showing lower highes, and lower lows... $50 was a huge number to break through, as they couldn't do this last time. Plus closing on the lows after a $2 sell off is another big technical sign.

[mac9001]

That's what I never understood about the whole "war for oil" argument.  Iraq produces, on its best day, about 2 million barrels of oil.  That's peanuts compared to nations like Kuwait, Saudi Arabia and even Iran.  If you really wanted to talk about a war for oil the correct place to look was the first Gulf War and that's because Saddam Hussein was poised to sieze most of it in the gulf region.

 

Iraq might not have the capabilities to produce large amounts of oil now, but the Iraq oil reserves are supposed to be over 100 billion barrels. Thats second only to Saudi Arabia, so there's plenty money to be made off Iraqi oil.

[CubKilla]

Iraq might not have the capabilities to produce large amounts of oil now, but the Iraq oil  reserves are supposed to be over 100 billion barrels. Thats second only to Saudi Arabia, so there's plenty money to be made off Iraqi oil.

 

Then the US better get moving. This $2.29 a gallon crap is getting out of hand.

[jackie hayes]

Damn! That whole ANWR thing really did work. Was I wrong on that one!

[mac9001]

Then the US better get moving. This $2.29 a gallon crap is getting out of hand.

 

More oil isn't the solution; alternative fuels is what will keep oil prices down. I've done a lot of research into the "oil problem" and more oil will have little to no effect on future prices.

 

As of right now about 25% of U.S power plants are run on oil (only 8% on nuclear power), build more nuclear power plants, invest in solar, wind and geothermal power. Finally there's nothing like a fuel efficient car, if everyone was getting 40 miles to the gallon we wouldn't have this problem.

[NUKE_CLEVELAND]

More oil isn't the solution; alternative fuels is what will keep oil prices down. I've done a lot of research into the "oil problem" and more oil will have little to no effect on future prices.

 

As of right now about 25% of U.S power plants are run on oil (only 8% on nuclear power), build more nuclear power plants, invest in solar, wind and geothermal power. Finally there's nothing like a fuel efficient car, if everyone was getting 40 miles to the gallon we wouldn't have this problem.

 

 

You can thank enviro wackos for our current problems. Because of their resistance there have been no nuclear plants built in 30 years & no new refining capacity built in 30+ years.

 

Refining capacity, or the lack thereof, is a huge reason why gas is so expensive. We have oil sitting around in inventory but there aren't enough refineries to change it over to gasoline and other distilates to meet demand.

[Punch and Judy Garland]

yeah, screw the planet. Who needs it?

[mac9001]

You can thank enviro wackos for our current problems.  Because of their resistance there have been no nuclear plants built in 30 years & no new refining capacity built in 30+  years. 

 

Refining capacity, or the lack thereof, is a huge reason why gas is so expensive.  We have oil sitting around in inventory but there aren't enough refineries to change it over to gasoline and other distilates to meet demand.

 

You can't really blame the environmentalists for low refining capacity. Iin the early 80s the government stopped subsidizing many small refineries thus slowing refining capacity growth. Taxpayer money was fattening profits for these small refineries and the output from these refineries was not worth the expense. New refineries are just not profitable enough for people to invest money in. Unless we scrap just about every air pollution law, nothing short of huge government subsidiaries would save U.S oil refineries.

 

So once again i return to my original point; the anwser isn't more oil, it's less.

Edited May 2, 2005 by mac9001

[southsider2k5]

The 9:30 am released report on Crude inventories was good for us consumers as well. Inventories were up 2.6 million barrels, which instantly pushed down the price of crude down about $1 a barrel on the futures markets. Stocks also liked the number as they staged a mini-rally extending their gains. In real time prices are right at $49 a barrel, which would be great to hold under $50 for the mindset.